Ericsson (ERIC - Free Report) Consumer & IndustryLab recently unveiled its latest Insight Report — the Zero touch customer experience. The report is aimed at exploring the future of customer interactions with mobile service providers.
The report gathered insights based on both quantitative and qualitative research methods. Quantitative data was collected from seven markets — Brazil, China, Germany, South Korea, Sweden, the U.K. and the United States. Qualitative insights were gathered from four focus groups in London and New York.
Based on the report findings, it emerged that smartphone users interact with mobile operators across multiple touch points and expect a hassle-free, one-click digital experience. The report outlines customers' frustrations at these interactions, as it presently takes 2.2 attempts and 4.1 days, on an average to successfully complete an interaction. Such high customer effort, in turn, negatively impacts their satisfaction levels.
Further, the report states that mobile service providers can leapfrog to a zero-touch customer experience in future by harnessing the power of artificial intelligence (AI) and analytics. Consumers expect service providers to match leading digital consumer experience.
Telecom service providers could leapfrog one-click and move from multiple-click to zero-touch by deploying future technologies in their customer offerings. The report shows that zero-touch experiences are now an expectation of customers.
With the help of AI, telecom service providers could use data from earlier interactions and consumer behavior to anticipate consumers’ needs and solve issues with minimal effort. One-tenth of U.S. households have a voice-enabled home assistant device. As voice assistants become more prominent in consumers' everyday lives, Ericsson intends to integrate support interactions over these platforms as well.
Ericsson remains focused on three key areas — core business growth, targeted growth, and cost and efficiency — in order to maintain its growth momentum. Over the past three months, the stock has significantly outperformed the industry with an average return of 14.6% against a decline of 2.5% for the latter.
Ericsson currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader industry include BlackBerry Limited (BB - Free Report) , Micron Technology, Inc. (MU - Free Report) and Motorola Solutions, Inc. (MSI - Free Report) . While BlackBerry and Micron sport a Zacks Rank #1 (Strong Buy), Motorola carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BlackBerry has an expected long-term earnings growth rate of 18.6%. It exceeded earnings estimates twice in the trailing four quarters, with a positive beat of 500%.
Micron has an expected long-term earnings growth rate of 10%. It exceeded earnings estimates in each of the trailing four quarters, with an average of 8%.
Motorola has an expected long-term earnings growth rate of 8%. It exceeded earnings estimates in each of the trailing four quarters, with an average of 12.1%.
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